How so? Surely, most people who enroll in these programs doesn't make it. Just like most traders trying to trade their own money doesn't make it. So, for the few who can and who does not have the funds available to fund their own account - why not? Disclaimer: I have not looked into these programs in detail, so there may be a catch I'm not seeing.
It's identical to paper trading. No difference. What's the point of paying a monthly fee for those services exactly?
Hello Franklin, from your comments it seems that you are unfamiliar with our service. Would you like to have a look at the site here: www.earn2trade.com/gauntlet-mini. It will very quickly describe the program in detail, in particular what you are paying a monthly fee for.
As I understand it - it's paper trading initially, but when you've proven yourself profitable according to their criteria, you gain access to a funded account. Why would they offer this service for free? If the business model was set-up such that it was impossible for a trader to succeed, I could understand the criticism, but that not being the case I don't understand the criticism. Would you yourself fund traders for free, offer infrastructure and without any selection criteria or proof of success....?
you have a chance of making money like a lotto you will definitely lose more money with a real account that with one of these services. as someone else stated most people lose money trading real accounts you actually have an edge with these sim accounts and as the stream of companies that keep popping up people still cant make money its a good business model for a business.
Why not just change the profit targets to 3.33 x your largest day because thats really what the target is. Sure I gave that example if you want to keep to your listed profit target then basically divide by 30 and thats your max daily profit. The reduction odds comes in when your max winning day is less than your max losing day so basically 1 losing day completely wipes your winning day losing day has about a 5% edge another point of odds reduction comes when you go past the 30% on a specific account your target PL goes up but your trailing draw down limits dont surely you can see that your odds of passing have changed from this. None the less Im posting this for other people that may not know this. For me E2Ts 15 day funding was already at the bottom but the edge was that you can "coast" and if funded your withdrawals wouldn't be income but the variable profit target and fixed draw downs makes in even lower.
I think the thing most beginners don't understand is that services like this are not in the business of funding beginning traders, this is just their carrot. They are in the business of charging for paper trading account and, above all, they charge for hope. The hope of a beginning trader that they get funded. Statistics of how those services generate profits is impossible to come by and also the profitability of all subscribers in aggregate. I venture a guess that subscribers mostly pay a subscription fee for a pipe dream, also known as lottery ticket.
Exactly, you seem to have gotten it and are honest enough to admit it. It is a lottery ticket. Nothing more, nothing less. Lottery tickets are for virtually everyone a losing proposition. Anyone who takes trading seriously enough will first learn the basics and theory, then advance to place virtual trades and assess performance, then advance to fund an account with a small amount and trade very small positions, and ultimately grow size once profitability supports that. Anything else is shortcuts that generally turn out to be losing propositions. Same with the gold rush, gold diggers hardly ever made a dime, its those who sell the shovels who got rich.
How does this compare to a lottery? The odds of winning a lottery are extremely low (almost non existent) and require 100% luck. Completing an evaluation account and making money in the funded account requires skill. If you pass it on luck, you will fail later on. I am not saying traders should go this way or should not go this way, but your comparison doesn't make any sense at all.
Its a perfectly valid comparison. Getting funded and hence passing the requirements is pure and utter luck for beginning traders. Any beginner who is truly skilled would never ever use this service. They would learn by themselves and they would have worked hard enough to have put enough money aside to, later on, open a small live account. It comes down almost purely to luck. And that is exactly what happens with a lottery ticket. I am not saying that subscribers of those services, on the other hand, are stupid or lazy. It amazes me again and again how some people pay money for completely unnecessary services yet have a hard time to save money for a larger future purchase/investment.